Abstract

The world economy started slowing down since the third quarter of 2008 leading to economic crises worldwide. GDP declined from an average growth of 3 per cent during 2003-2007 to 1.5 per cent during 2008-2012. The decline of world GDP growth was the sharpest at 42 per cent during the third quarter of 2008 to the second quarter of 2009. Not only capital inflows to developing and emerging market economies declined during this period, there has been significant shrinking of markets for developing country exports. This paper determines overall consequences and its policy implications of Global Crisis. Time period is 2003-2012, from these 2003-2007 is the pre crisis and 2008-2012 is the post crisis period. JEL CLASSIFICATIONS-, F1, F6